Chams Holding Company Plc’s nine-month profit rose 56.1 percent to N781.45 million in 2026, driven by finance income as operating profit declined year on year and cash outflows from operations widened year-on-year.

The identity management and payments technology group reported revenue of N15.69 billion for the nine months ended September 2026, up 16.6 percent from N13.45 billion in the corresponding period of 2025.

Gross profit increased 35.4 percent to N4.06 billion, as cost of sales grew more slowly than revenue.

However, operating profit fell 30.8 percent to N881.11 million from N1.27 billion a year earlier. Administrative expenses surged 69.6 percent to N3.19 billion from N1.88 billion, absorbing much of the improvement in gross profit and pointing to rising pressure on operating profitability.

Finance income jumped to N784.51 million from N18.11 million in the prior-year period, helping lift profit before tax 53.2 percent to N1.00 billion.

Finance costs rose 4.2 percent to N663.19 million from N636.58 million. After tax expenses of N220.99 million, profit reached N781.45 million, compared with N500.71 million in 2025.

The earnings mix raises questions about how much of the profit growth can be sustained through the company’s core operations, particularly if finance income does not remain at the same level.

The balance sheet shows total assets of N34.11 billion in September 2026, compared with N20.66 billion in September 2025.

Trade receivables increased to N14.82 billion from N7.13 billion, highlighting the importance of converting customer balances into cash. Cash and cash equivalents stood at N3.28 billion, against N353.80 million a year earlier.

Despite the higher cash balance year-on-year, operating cash outflow widened to N777.41 million from N313.32 million in the corresponding nine months of 2025.

The group also spent N1.95 billion on property, plant and equipment during the 2026 period. Cash fell by N1.88 billion from the beginning of 2026 to September, a separate movement from the year-on-year comparison.

The cash-flow statement also records a N270 million dividend payment. Total liabilities declined to N13.81 billion from N14.86 billion a year earlier.

Total Equity stood at N20.30 billion in September 2026, up from N10.56 billion in September 2025, on a share premium boost to N5.38 billion.

The company’s market capitalisation is N29.7 billion. Market data indicated a year-to-date share-price decline of about 17.5 percent, and it currently trades at N3.3.